Banking and Finance Industry Research

All

Commercial Credit

Small Business Credit

Case Study

Commercial Scores

Credit Outlook

PayNet Strategic Insights

Commercial Credit,Small Business Credit,PayNet Strategic Insights

Strategic Insights May 2020

The PayNet Small Business Lending Index (SBLI) fell 19.6 points (-13.5%) to 125.2 in March, its lowest level since July 2017, and is now 10.5% below its year-ago level. The SBLI 3-month moving average declined 4.1% last month and is also down 4.1% over the last twelve months.

Commercial Credit,Small Business Credit,PayNet Strategic Insights

Strategic Insights April 2020

The PayNet Small Business Lending Index (SBLI) ticked down 1.1 points (-0.7%) to 147.7 in February while edging up 0.5% from February a year-ago. The SBLI 3-month moving rose 1.6% last month and is up 2.3% compared to February last year. The index’s February movement predates the impact of COVID-19.

CASE STUDY: OPTIMIZING A CRM TO EMPOWER THE SALESFORCE AND DRIVE REVENUE

Commercial Credit,Small Business Credit,PayNet Strategic Insights

Strategic Insights March 2020

The PayNet Small Business Lending Index (SBLI) increased 4.8 points (+3.4%) to 147.9 in January while declining 1.0% from January last year. The SBLI 3-month moving average edged down on a monthly basis (-0.1%) but improved from year-ago levels (+1.3%).

Commercial Credit,Small Business Credit,PayNet Strategic Insights

Strategic Insights February 2020

The PayNet Small Business Lending Index (SBLI) fell 1.5 points (-1.1%) to 138.6 in December and is up 3.9% above its year-ago level. The SBLI 3-month moving average ticked down on a monthly basis (-0.3%) while increasing slightly relative to a year ago (+0.6%).

PayNet Strategic Insights,Small Business Credit,Commercial Credit

Strategic Insights January 2020

The PayNet Small Business Lending Index (SBLI) fell 8.1 points (-5.4%) to 140.8 in November and is 1.9% below its year-ago level. The SBLI 3-month moving average ticked down on a monthly basis (-0.4%) but grew modestly relative to a year ago (+1.2%).

Small Business Credit,Commercial Credit,PayNet Strategic Insights

Strategic Insights December 2019

The PayNet Small Business Lending Index (SBLI) improved 7.7 points (5.5%) to 147.5 in October. On an annual basis, the SBLI ticked down -0.1%, while the SBLI 3-month moving average ticked down on both an annual (-0.4%) and monthly (-0.6%) basis.

Small Business Credit,Commercial Credit,PayNet Strategic Insights

Strategic Insights November 2019

The PayNet Small Business Lending Index (SBLI) fell 3.3 points to 139.4 in September but remains in the top 15% of historical readings. Compared to a year ago, the SBLI is up 4.7%. The SBLI 3-month moving average ticked up on both an annual (+1.0%) and monthly (+0.5%) basis.

Small Business Credit,Commercial Credit,PayNet Strategic Insights

Strategic Insights October 2019

The PayNet Small Business Lending Index (SBLI) fell 8 points to 142.2 in August and is down 5.5% compared to a year ago. The SBLI 3-month moving average also fell and is now below its year-ago level for the first time in more than two years. Despite the decline, the SBLI is still in the top 10% of historical readings.

Small Business Credit,Commercial Credit,PayNet Strategic Insights

Strategic Insights September 2019

The PayNet Small Business Lending Index (SBLI) rebounded in July, jumping 15 points (+11% M/M) to 152.2. The SBLI now stands near its all-time high and 5% above year-ago levels. The SBLI 3-month moving average fell 1.3% on a monthly basis and ticked up slightly on an annual basis.

PayNet Strategic Insights

Strategic Insights August 2019

The PayNet Small Business Lending Index (SBLI) fell nearly 23 points (14.5%) to 135.0 in June — its sharpest monthly decline on record and lowest point since December — and is now 6.8% below year-ago levels.

PayNet Strategic Insights

Strategic Insights July 2019

The PayNet Small Business Lending Index (SBLI) fell slightly to 157.2 in May but is up 1.3% compared to twelve months ago and remains near an all-time high. The SBLI 3-month moving average rose on a monthly basis and currently stands 2.4% above its year-ago level.

Credit Outlook

Q2 2019 Credit Outlook for Main Street

PayNet Strategic Insights

PayNet Strategic Insights June 2019

The PayNet Small Business Lending Index (SBLI) rose 20.1 points to an all-time high of 159.7 in April and is now up 11.4% compared to year-ago levels. The SBLI 3-month moving average also rose on a monthly basis and currently stands 3.2% above its year-ago level.

Small Business Credit,Commercial Credit

What Are Small Businesses?

80% of small businesses are still run by the same individual or family that started the business. Raddon VP of Research Bill Handel lays out some critical statistics about the longevity and revenue size of small businesses and how those impact their credit needs.

Small Business Credit,Commercial Credit

Wrap Up

60% of small businesses are in growth mode, yet at the same time, there's been a decline of small business entrepreneurship. The reason for the decline? America's broken credit system. PayNet President & Co-Founder William Phelan lays out the vital impact small businesses have on the economy--and why fixing the credit system is an imperative initiative.

Small Business Credit,Commercial Credit

Where Small Businesses Like to Bank

71% of small businesses use one of the Top 6 banks as their primary financial institution, compared to just 39% of consumers. Raddon VP of Research Bill Handel lays out the two main reasons for the big banks' dominance in the small business lending space. Meanwhile, PayNet SVP & GM William Phelan provides insight into how this phenomenon represents an opportunity for community financial institutions.

PayNet Strategic Insights

Strategic Insights May 2019

The PayNet Small Business Lending Index (SBLI) fell 6.5 points to 140.0 in March and is now down 3.8% compared to year-ago levels. However, the index remains in the top 10% of all historical readings. The SBLI 3-month moving average rose on a monthly basis and currently stands 0.7% above its year-ago level.

PayNet Strategic Insights

Strategic Insights April 2019

The PayNet Small Business Lending Index (SBLI) remains in the top 3% of all historical readings. While the SBLI edged down 2.4 points to 146.9 in February, it rose 2.1% on an annual basis, its 16th year-over-year increase in the last 17 months.

Small Business Credit,Commercial Credit

Decline of Small Business Lending

Small Business Credit,Commercial Credit

Rise of Fintech

A decline in credit access in large banks has led to the rise of the fintechs in the lending space. The percentage of small businesses borrowing online has gone from 14% in 2014 to 24% in 2018--a dramatic jump whose implications should concern financial institutions.

Small Business Credit,Commercial Credit

Small Business, Big Impact

The 30 million small businesses in the U.S. account for about half of the GDP. Raddon VP of Research Bill Handel and PayNet SVP & GM William Phelan explain small businesses' vital role as a growth driver in the U.S. economy—and how this explains the decline in GDP since the Great Recession.

Small Business Credit,Commercial Credit

The Broken Credit System

The hypothesis: big bank lending was down and it was impacting local economies. Drawing on the large pool of PayNet data, Harvard laid out a study to see if this was true--and if so, the reasoning behind it.

PayNet Strategic Insights

Strategic Insights March 2019

Business investment picked up in the fourth quarter after a deceleration in Q3, but overall economic growth cooled and is expected to weaken further in 2019. Small business sentiment has also softened thus far in 2019, in part because of the January government shutdown.

Commercial Scores,Commercial Credit

New Study Demonstrates High Lift from Commercial Scores Even in Cases Where Credit Files Are "Thin"

A PayNet client asked how predictive PayNet’s scores were when the borrower’s credit file was thin, with few prior contracts. To evaluate this, PayNet conducted two analyses using PayNet MasterScore® v2 at time of origination for transactions originated from 2005 to 2012...

What is the Impact of Repossessions on a Borrower's Credit Score?

Commercial Scores,Commercial Credit

What is the Credit Quality of Marketplace (Alternative) Lenders?

Marketplace refers to a broad category of companies providing capital to businesses and consumers at a lower cost than traditional channels using a combination of technology, data, analytics, and traditional credit systems. The Marketplace lending model is generally high risk with high return.

Copyright 2020 Equifax, Inc. All rights reserved Equifax and the Equifax marks used herein are trademarks of Equifax Inc. Other product and company names mentioned herein are the property of their respective owners.